The agency made three mistakes in its fixed-asset records: it kept transferred equipment on its books, added insurance costs to building value when they should have been expensed, and recorded the same project transfer twice. These errors made the reported value of assets wrong.

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Original Audit Finding Excerpt

"180 1.103 Sound accounting practice dictates that, capitalized expenditures whose projects were already completed should be reclassified to the appropriate asset accounts together with the cost of the said projects. 1.104 Moreover, the late recording of completed projects in the appropriate infrastructure accounts is not in accordance with Section 8(g), Chapter 10, Volume I of the GAM for NGAs, which requires recognition of completed projects in the books of the agency upon project completion. 1.105 Additionally, the COA -Government Accountancy Sector stated in its Memorandum dated April 17, 2017, that the recognition of the CIP and the corresponding Accounts Payable equivalent to the unbilled amount and the transfer of the whole amount of the project from the CIP account to the appropriate PPE accounts shall be based on the C ertificate of 100% Completion. These documents are to be issued by authorized officials, such as the Project Management Team or Project Engine"

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